IMP 201710310007A
First quarter production report for the period 1 July 2017 to 30 September 2017
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
ISIN: ZAE000083648
(“Implats” or “the Group”)
First quarter production report for the period 1 July 2017 to 30 September 2017
Implats’ Chief Executive Officer, Nico Muller, commented, “Safety remains an issue at Impala
Rustenburg and Marula. This is being dealt with at all levels within the Group to receive the
necessary support and resources to reverse these poor safety performances. We are pleased to
note early signs of improvement in efficiencies and production levels at the Impala Rustenburg
operations in line with planned interventions. Zimplats, Mimosa and Two Rivers delivered another
strong operating performance during the quarter, while Marula, which has undergone an
organisational restructure recently, delivered a pleasing turnaround and an increase in
concentrate production.”
Unaudited Unaudited
Operational information Quarter ended Quarter ended
30 September 2017 30 September 2016
Gross production:
Tonnes milled 000t 6 741 6 149
Grade (6E) g/t 3.83 3.95
Platinum in concentrate (mine-to-market) 000oz 349 327
Platinum in concentrate (third-party and toll) 000oz 100 57
Platinum refined 000oz 341 365
Impala platinum refined 000oz 133 151
IRS platinum refined 000oz 209 215
Palladium refined 000oz 189 223
Rhodium refined 000oz 46 44
Nickel refined 000t 3.71 3.97
Managed operations production:
Impala
Tonnes milled 000t 2 984 2 433
Grade (6E) g/t 3.95 4.17
Platinum in concentrate 000oz 181 156
Platinum refined 000oz 133 151
Zimplats
Tonnes milled 000t 1 690 1 703
Grade (6E) g/t 3.49 3.49
Platinum in concentrate 000oz 71 71
Platinum in matte 000oz 47 51
Marula
Tonnes milled 000t 498 446
Grade (6E) g/t 4.43 4.41
Platinum in concentrate 000oz 23 21
JV operations production:
Mimosa
Tonnes milled 000t 717 690
Grade (6E) g/t 3.86 3.80
Platinum in concentrate 000oz 32 30
Two Rivers
Tonnes milled 000t 852 877
Grade (6E) g/t 3.70 4.12
Platinum in concentrate 000oz 42 49
Group and third party production:
IRS
Platinum refined 000oz 209 215
Mine-to-market platinum refined 000oz 151 145
Third-party and toll platinum refined 000oz 57 70
SAFETY
Implats remains committed to ensuring zero harm and the Group’s safety strategy is premised on
providing an inherently safe work environment, maintaining leading safety practices and
inculcating safe behaviour at all times. Management remains resolute in leading this imperative
through direct engagement with all our stakeholders, including each employee in the organisation,
the leadership of our representative unions and government.
Regretfully, Implats has experienced a disappointing safety performance over recent months, with
Impala Rustenburg recording two incidents during the quarter in which three employees suffered
fatal injuries. Post the end of the quarter, another two employees sadly passed away at Impala
Rustenburg after extended medical treatment following incidents which occurred during the period
under review. Regretfully, Marula also experienced a fatal incident during October 2017. The
company has provided support to the families of the deceased, while the board of directors of
Implats and the management team have extended their very sincere sympathies to the family,
friends and colleagues of these employees.
Following these incidents, management has worked closely with the safety directorate of the
Department of Mineral Resources (“DMR”) and the worker representative structures of the
Association of Mine Workers and Construction Union (“AMCU”) to effect corrective measures to
arrest the decline in safety performance and agree on initiatives to prioritise safe production,
particularly at the Impala Rustenburg operations.
PRODUCTION
Tonnes milled across the Group during the quarter increased by 9.6% to 6 741 000 tonnes,
compared to 6 149 000 tonnes achieved in the prior corresponding period.
The increase was largely as a result of a much stronger operational performance at Impala,
compared to a poor first quarter performance in the prior corresponding period. Consequently,
platinum in concentrate produced during the quarter across all mining operations (managed and
Joint Venture), increased by 6.7% to 349 000 ounces, compared to 327 000 ounces in the prior
corresponding period.
Notwithstanding the strong performance from all operations across the Group, final refined metal
output was significantly impacted by a concentrate stock build-up following scheduled furnace
maintenance at both the Impala and Zimplats operations. Consequently, gross refined platinum
production during the quarter decreased by 6.6% to 341 200 ounces, compared to
365 200 ounces achieved in the prior period.
Planned maintenance was undertaken during the quarter at the Impala number 3 and number 5
furnaces and at the Zimplats furnace. During the maintenance of the Impala number 5 furnace,
excessive wear in some areas became apparent and a decision was taken to completely refurbish
it. As a result, the furnace is now only scheduled to come back on-line from December 2017,
which will impact planned pipeline stocks at half-year and year-end, given that capacity constraints
at the base metal refinery will not allow all the accumulated smelter matte stocks to be fully
processed during the 2018 financial year. Consequently, notwithstanding mined production being
in line with guided levels, gross refined platinum production for the Group is now expected to be
between 1.51 and 1.56 million ounces of platinum in 2018.
Impala
Impala delivered a much improved operational performance compared to the previous comparable
period, which was negatively impacted by the 14 Shaft decline fire and 1 Shaft fall-of-ground safety
incident. During the current quarter, in line with FY2018 guidance, improved efficiencies have
started to materialise, resulting in higher output, following the introduction of various initiatives at
the operation. Consequently, tonnes milled during the quarter increased by 22.6% to 2 984 000
tonnes, compared to 2 433 000 tonnes in the previous comparable quarter. The mill grade (6E),
which deteriorated by 5.3% to 3.95g/t, was impacted by ore pass rehabilitation work at 16 Shaft
and an increase in lower grade reef development compared to the prior corresponding period.
This resulted in platinum in concentrate produced at Impala increasing by 16.0% to 181 000
ounces, compared to 156 000 ounces in the prior period.
Zimplats
Zimplats sustained operational performance at above design capacity with mill throughput and
grade largely unchanged at 1.69 million tonnes and 3.49 g/t (6E) respectively. As a result,
platinum in concentrate produced at the operation during the quarter remained unchanged at
71 000 ounces. However, platinum in matte was again impacted by scheduled furnace
maintenance during the quarter. The furnace was switched off for a planned 49-day sidewall reline
at the end of August 2017. Metal produced from the concentrators during the shutdown period
will be exported as concentrate during the quarter ending December 2017. Consequently, matte
production during the quarter reduced by 7.8% to 47 000 ounces, compared to 51 000 ounces in
the prior corresponding period.
Marula
Marula delivered an improved operational performance, in line with the performance conditions
set by the Implats board of directors and market guidance for the 2018 financial year. Tonnes
milled during the period increased by 11.7% to 498 000 tonnes, compared to 446 000 tonnes in
the prior corresponding period. This increase was achieved following business restructuring
initiatives completed in the prior financial year and ongoing multi-stakeholder interventions to
prevent community protest action and business interruptions. As a result, platinum in concentrate
production improved 9.4% to 23 200 ounces compared to the 21 200 ounces in the prior
corresponding period.
Mimosa
Mimosa sustained its strong operational performance with tonnes milled during the period
increasing by 3.9% to 717 000 tonnes, compared to 690 000 tonnes in the previous comparable
quarter. Platinum production in concentrate increased 5.6% to 32 200 ounces from 30 500 ounces
in the prior corresponding period on the back of the improved tonnage and a 1.8% higher mill
grade.
Two Rivers
Two Rivers’ mill throughput and head grade were impacted, as expected, by split reef areas
currently being mined before further high-grade areas can be accessed. Consequently, tonnes
milled decreased 2.8% to 852 000 tonnes, compared to 877 000 tonnes in the previous
comparable quarter, and the mill grade (6E) deteriorated by 10.2% to 3.70g/t. This impacted
platinum in concentrate production, which decreased by 15.6% to 41 600 ounces, compared to
49 300 ounces in the prior comparable period.
Impala Refining Services (“IRS”)
Increased deliveries from third-party customers during the period were more than offset by the
build-up in concentrate stocks as a result of scheduled furnace maintenance at both the Impala
and Zimplats operations. As a result, IRS refined platinum production during the period decreased
2.7% to 208 700 ounces, compared to 214 500 ounces in the prior comparable quarter.
The above information has not been reviewed and reported on by the Group’s external auditors.
QUERIES
Johan Theron Alice Lourens
Group Executive: Corporate Relations Group Corporate Relations Manager
E-mail: Johan.Theron@implats.co.za E-mail: Alice.Lourens@implats.co.za
Tel: +27 11 731 9013/43 Tel: +27 11 731 9033/43
Cell: +27 82 809 0166 Cell: +27 82 498 3608
Johannesburg
31 October 2017
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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